tax-exempt

[ taks-ig-zempt ]

adjective

1. not subject or liable to taxation:

   tax-exempt imports.

2. providing income that is not taxable:

   tax-exempt municipal bonds.

noun

1. a tax-exempt security.

tax-exempt

adjective

1. (of an income or property) exempt from taxation
2. (of an asset) earning income that is not subject to taxation

Word History and Origins

Origin of tax-exempt¹

First recorded in 1920–25

Example Sentences

But having reached something of a compromise, the IRS approved the school as a tax-exempt nonprofit in March 2002.

From The Daily Beast

The tax-exempt donations do not appear to run afoul of U.S. law.

From The Daily Beast

In March 2010, the IRS office began looking at the tax exempt status of tea party groups.

From The Daily Beast

But as a matter of law, these tax-exempt organizations do maintain a pro-forma nonpartisan posture.

From The Daily Beast

The commissioner of the IRS Tax Exempt and Government Entities Division was forced into retirement.

From The Daily Beast

The tax-exempt organizations have a vested interest in the oppressive, inequitable, and wasteful federal-income-tax system.

From Project Gutenberg

These accumulations of tax-exempt billions place a heavier burden on taxpayers.

From Project Gutenberg

But the Cox resolution was adopted in 1952; and the Cox committee to investigate tax-exempt foundations was set up.

From Project Gutenberg

As the income tax rate decreases, the yield from tax-exempt securities diminishes proportionately.

From Project Gutenberg

The yield of tax-exempt securities at prevailing prices ranges from 3-1/2% to nearly 4-1/2%.

From Project Gutenberg